Union fears for ATO boss

A public sector union has called on the federal government to name the successor to outgoing tax man
Michael D’Ascenzo
as rumours circulate among the 24,000 tax staff that they may soon have a new boss who is foreign to the office.

Australian Services Union tax secretary
Jeff Lapidos
said there were no obvious candidates within the Australian Taxation Office.

The three staff at the next most senior level have retired this year or plan to in the next.

“I suspect the reason the government is now looking at an outside appointment is they wish to see the capability in the office substantially improved," said Mr Lapidos. “The excuse that the GFC was the only cause of the reduction in collections by the office just rubbed too thin."

Treasury has revised down tax receipts by nearly $160 billion in the past five years. It expects $343 billion in tax collections this fiscal year, up from just under $310 billion last year.

Mr Lapidos said there weren’t enough technical senior officers, management levels had mushroomed, and an $800 million investment in upgrading computers had hurt compliance.

“They need to have a reappraisal and hopefully the new commissioner will do that."

Second Commissioner Bruce Quigley is due to end his term next December. Mr Lapidos said it was in the public interest that the 40-year veteran of the office stay for his full term to help the new leader to settle in.

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Mr Lapidos favours a successor drawn from the private sector. Institute of Chartered Accountants general manager Yasser El-Ansary said that would be like “throwing the dice and taking a very big gamble" when the government was chasing revenue to meet its surplus promise. “Over the medium term, it would be entirely appropriate for the [position] to be opened up to the private sector," he said.

Despite the speculation, senior public servants from other organisations are favoured for the job.

Department of Agriculture, Fisheries and Forestry deputy secretary
Rona Mellor
, who rocketed up the ranks in her 20 years at the ATO, is a front-runner. Sources say she was a favourite of former tax commissioner Michael Carmody as well as Mr D’Ascenzo.NSW auditor-general
Peter Achterstraat
, who spotted the $1 billion error in the state’s books, is also mentioned, along with deputy auditor-general at the national level
Steve Chapman
, Department of Climate Change and Energy Efficiency secretary
Blair Comley
and Treasury revenue head Rob Heferen.

Some rumours place a foreigner at the helm: American Douglas Shulman, who is relatively young at 45 and is due to step down from his role at the head of the internal revenue service this week; and the recently retired boss of the UK tax authority, Dave Hartnett, who caused controversy during his term for a perceived closeness with business.

The government declined to reveal who will succeed. Opposition treasurer Joe Hockey said it was of little surprise because “dysfunctionality is part and parcel of this Labor government".

Mr Hockey has long argued for greater private sector involvement in the ATO.

“There is a view that the ATO should draw on broader sources of expertise and perspectives given there are concerns that it has an inwardly focused culture and fails at times to appreciate the impact of its decisions," he said.

“The coalition has already announced it [will] expand the number of ATO Second Commissioners by creating four part time appointments – all of whom will be individuals with deep experience in the private sector."